Punjab Assembly Approves Landmark Minimum Wage Bill

The provincial Punjab Assembly has passed an amendment bill to update employee social security laws, aiming to regulate a minimum wage of Rs. 40,000 across the province.

The legislation proposes changes to the Employees Social Security Ordinance 1965, aligning provisions with current requirements under the Provincial Employees Social Security Act 2026 framework.

Officials said existing law retains an outdated maximum salary threshold of Rs. 22,000, creating legal complications after the minimum wage was raised to Rs. 40,000.

The bill seeks to validate social security contributions paid since July 2022, addressing legal issues faced by departments due to absence of updated reforms earlier.

It is worth noting that the lawmakers approved the bill with a majority vote, and it will now be sent to the Governor of Punjab for final approval before becoming law.

Authorities said the amendments are necessary to ensure compliance with revised wage structures and to resolve procedural difficulties in enforcing social security regulations effectively fully.

From July 1, 2025, Punjab has enforced a fixed minimum wage for unskilled workers, establishing PKR 40,000 monthly based on 26 official working days.

This mandatory wage applies uniformly across industrial, commercial, and private establishments, ensuring standardized compensation structures for all unskilled labour.

Authorities confirmed equal pay provisions, ensuring men and women receive identical minimum wage benefits, strengthening compliance with provincial labor and social security regulations.

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